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Hydrodec clears the decks

The oil re-refining company is returning to production in Canton.
March 24, 2015

The set-back for used oil recycling group Hydrodec (HYR) caused by the explosion at its Canton, Ohio, plant in 2013 finally appears to be behind it.

IC TIP: Buy at 7.1p

Full-year results showed total income growth of 36 per cent to $54.7m (£36.7m) in 2014. True, these figures were only achieved after Hydrodec finalised a $20m settlement with its insurers over the Canton issue, an agreement that netted the company a $1.4m profit. But with a return to 2013 production levels at Canton likely by mid-May, and the newly improved facilities expected to generate 37m litres of refined oil next year, Hydrodec – which is less exposed to oil price swings than producers – is again looking like the growth story we originally spotted.